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Question

The stock exchange can play a vital role in ensuring wider share ownership by regulating new issues, better trading practices etc. Identify the function which explains this ___________ .

A
Pricing of Securities
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B
Spreading of Equity Cult
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C
Contributes to Economic Growth
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D
Safety of Transaction
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Solution

The correct option is B Spreading of Equity Cult
The stock exchange can play a vital role in ensuring wider share ownership by regulating new issue better trading practices etc- spreading of equity cult function of stock exchange is mentioned. Basic function of stock exchange are providing Liquidity and Marketability to existing securities. Stock exchange can be defined as an association, organization or body of individuals whether incorporated or not established for the purpose of assisting, regulating and controlling of business in buying, selling and dealing in securities.

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